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GBP/USD slips as stronger US factory activity lifts the US dollar

GBP/USD fell to about 1.3439 after the ISM Manufacturing PMI jumped to 55.6 in July, while the DXY rose to 99.94.

Reported · Written up by our desk · Major Pairs

The British pound weakened against the US dollar, with GBP/USD down about 0.27% on Monday as the greenback recovered some ground, FXStreet reported. The pair was last around 1.3439 after a daily high near 1.3506.

The move followed a stronger US manufacturing print, with the ISM Manufacturing PMI for July rising from 53.3 to 55.6, beating expectations. FXStreet added that the employment component increased for the first time since 2023, while prices paid suggested input costs remain elevated.

FXStreet also pointed to a shift in broader risk and rate expectations. The US Dollar Index was up 0.14% to 99.94, and the outlet said hopes that the Fed and the Bank of England would raise rates less aggressively eased, with expectations pointing to a Fed tightening of 22 basis points and a single BoE hike by year end.

Geopolitics and energy prices were another factor weighing on the dollar’s rivals, according to FXStreet. The outlet cited a pause in US strikes on Iran at Tehran’s request and said that eased oil, with West Texas Intermediate down more than 8.4% to below $80 a barrel.

Latest closeGBP/USD 1.349 ▲0.9%|Dollar index 99.80 ▼0.2%

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